Answer the following questions true (T) or false (F)
1. An increase in government spending increases the supply of money in our economy.
2. An appropriate fiscal policy response when aggregate demand is growing at a slower rate than aggregate supply is to cut taxes.
3. If real equilibrium GDP is above potential GDP, expansionary fiscal policy should be pursued.
1. FALSE
2. TRUE
3. FALSE
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The above figure shows the total revenue curve for Dizzy Discs. The demand curve for CDs sold by Dizzy Discs
A) has negative slope. B) has positive slope. C) is horizontal. D) is vertical.
_____ increase as we move away from unanimity rule
a. External costs b. Internal costs c. Pareto efficiency d. decision-making costs
To have more consumer goods in the future, we must
A) produce more capital goods today. B) lower current income. C) get government involved in the production process. D) stop producing all goods today.
Real income per person was the same until:
A. the 1800s, when the Industrial Revolution caused it to grow. B. Real income per person has been roughly the same for the last three centuries. C. the 1900s, when wireless technology caused it to grow. D. the 1500s, when the Renaissance caused it to grow.